Life Insurance is the first type of savings in France: according to the number given by the Federation Française de l’Assurance, the life insurance contracts have recently reached more than 1,700 billion of Euros.
The main Principles
There are two main life insurance or Endowment Policy categories: the first is the insurance in case of life and the second is the insurance in case of death. Both guarantee the payment of a lump sum or annuities to the beneficiary designated in the contract, either at the end of a specified period (maturity) or on death of the policy holder.
Guarantee or Investment:
The insurance in case of death is a guarantee for the heirs of the policy holder, while the insurance in case of life is an investment, as the policy holder can himself receive the lump sum at the end of the period.
Numerous life insurance policies are proposed with different periods of time and various benefits (e.g. payment of a lump sum or annuities).
The risks for the policy holder are dependent on the contract chosen: all contracts based on the Euros money have a guaranteed capital, when the contracts based on account units or shares may vary according to the markets.
The life insurance contracts are regulated by the insurances laws, especially articles L131-1 and L132-1 and following.
The pre-contractual information, the legibility and transparency of the contracts have been reinforced by the law number 2005-1564 from December 15th, 2005.
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